European leaders have called an emergency summit on the Greek vote. Before that, German Chancellor Angela Merkel is to meet with French President Francois Hollande to coordinate their response. Bloomberg's Hans Nichols reports on First Up." Bloomberg
Wall Street stocks followed global markets lower after the opening bell Monday after voters in Greece yesterday rejected austerity plans demanded by international creditors, casting doubt on the country's future in the eurozone.
The early declines in the U.S. stock market following the 'No' vote in Greece were not as sizable as some pundits predicted and Wall Street pros said there was no signs of panic in markets.
Fifteen minutes into the trading session, the Dow Jones industrial average was down about 110 points, or 0.6%, to 17,617, after being down as much as 166 points earlier. The broader Standard & Poor's 500-stock index has also pared its losses and was down about 0.6% as was the Nasdaq composite.
"There's been no panic of any kind," Paul Hickey, co-founder
of Bespoke Investment Group told clients. "The
market remains faithful that the
Talks, of course, between the Athens government and its eurozone creditors are set to begin anew in hopes of brokering a deal and avoiding a so-called 'Grexit,' or a Greek exit from the 19-nation eurozone economic and political bloc.
Benchmarks in Asia and Europe fell sharply and U.S. stock futures also declined.
Tokyo's Nikkei 225 index dropped 2.1% to close at 20,112.12.
In
After opening sharply lower, European stock markets recovered some ground after Greek Finance Minister Yanis Varoufakis announced his resignation, saying the decision would help Greece's prime minister reach an accord with the creditors.
In Germany, the DAX index was 1.5% lower and France's CAC 40 dropped 1.9%. Britain's FTSE 100 was down 0.6%.
On Wall Street, closed Friday for the Independence Day holiday, S&P 500 futures were down 0.8% while the Dow was 0.9% lower and the Nasdaq 0.9%.
Oil prices tumbled as benchmark U.S. crude dropped $2.43, or 4.3%, to $54.50 a barrel in electronic trading on the New York Mercantile Exchange.
The euro most recently bought $1.10, down 0.6%.
In the Greek referendum, 61.3% of voters rejected demands for further austerity measures by the International Monetary Fund, European Central Bank and European Commission.
European leaders are now expected to meet on Tuesday to discuss a response to the sharp rejection, which raises the prospect of a banking collapse that could force Greece out of the 19-member euro zone.
Without more emergency funding, Greece's banks could soon run out of cash. Banks were shut last week to avoid a run on deposits and customers are limited to ATM withdrawals of just 60 euros (about $66) per day.
Athens' stock market remains closed amid the turmoil.
Contributing: Laura Mandaro in San Francisco, Jane Onyanga-Omara in London, and Kirk Spitzer in Asia.
Aviva Investors Head of Macro Strategy Charles Diebel discusses the Greek referendum and the strained relationship between Greece and the EU Leaders. He speaks to Bloomberg's Anna Edwards on "Countdown." Bloomberg
(c) Copyright 2015 USA TODAY, a division of Gannett Co. Inc. To subscribe or visit go to: www.usatoday.com
http://www.usatoday.com/story/money/markets/2015/07/06/asia-markets-react-greece/29754945/